Section 41 - Special Agricultural Income
(1) Without prejudice to the generality of section 40, the provisions of this section shall apply to the computation of special agricultural income.
(2) If an asset is sold in any income year after being used by the taxpayer under section 40, it shall be computed as follows ,namely:-
SL. No. | Sale Proceeds | Amount of Money Treated as income |
(1) | (2) | (3) |
1. | If the proceeds of sale are more than the acquisition value of the asset | a-b shall be treated as “Capital Income” category income of the concerned taxpayer in the said income year; b-c shall be considered as the income of the concerned taxpayer in the “income from agriculture” category in the said income year. |
2. | If the realizable value is not more than the asset’s acquisition value, it is more than its disposal value | a-c shall be considered as the income of the income of the concerned tax payer in the “income from agriculture” category in the said income year. |
(3) If in any income year the amount received by the taxpayer as insurance, salvage or compensation due to the abandonment, wipedout or desfruction of any asset used in his agricultural work exceeds the depreciated value of the said asset, the said amount shall be included in the income from agriculture sector as described below namely:-
SL. No. | Sale Proceeds | Amount of Money Treated as Income |
(1) | (2) | (3) |
1. | Insurance, Salvage or compensation if the amount receive from insurance, salvation or compensation is more then the value for acquiring of the assets | a-b shall be treated as “Capital Income” category of the concerned taxpayer in the said income year; b-c shall be considered as “income from agriculture” category of the concerned taxpayer in the said income year. |
2. | Insurance, salvage or compensation amount if not more than the acquisition value of the asset, it is more than the depreciated value | a-c shall be considered as “income from agriculture” category of the concerned taxpayer in the said income year. |
(4) For the purposes of this section,—
a = sale proceeds of the asset or, as the case may be, proceeds of insurance, salvage or compensation against the asset,
b = acquisition value of asset, and
c = Shall mean calculated depreciated value of the asset after allowing depreciation under the Third Schedule,
(5) As per column (2) of the table in sub-sections (2) and (3), if the difference between the sale proceeds or, as the case may be, the amount received for insurance, salvage or compensation against the asset and the depreciated value is negative, the result shall be expended on “income from agriculture”. shall be deemed to be and shall be included in the allowable general deduction.
Note: This is unofficial English translation. In the event of a conflict between the information on this website and the original Government publications or notifications of laws, rules, regulations, and SROs, the Government publications or notifications shall prevail. Moreover, as per Section 345(2) of the Income Tax Act 2023, if there is a conflict between the English and Bengali text, the Bengali text shall prevail.